CHINA’S shares jumped yesterday to their highest level in seven weeks after the central bank took fresh steps to inject liquidity into the struggling economy.

    China’s central bank announced over the weekend that it would expand a pilot program that would boost banks’ lending abilities. The plan, currently in place in Shandong and Guangdong, allows banks to pledge certain assets to secure loans from the central bank. It will be expanded to nine provinces and cities including Shanghai and Beijing.

    “The market has widely interpreted the move as China’s version of quantitative easing,” said Jacky Zhang, analyst at BOC International.

    Investors were also in a buying mood ahead of the 13th five-year economic plan to be announced later this month, expecting stimulus and other growth measures.

    The CSI300 index of the largest listed companies rose 3.22 percent to 3,447.69, while the Shanghai Composite Index gained 3.28 percent to 3,287.66.

    Both hit their highest levels since Aug. 24, though are still down more than 30 percent from their highs in mid-June, the start of a market rout that rocked global markets.

    But in a sign that some investors may be returning to the market, trading volumes in Shanghai jumped more than 60 percent from the previous session, and nearly tripled the low hit Sept. 30.(SD-Agencies)